Eight steps to undertake successful plan Enterprise-Wide Succession
Succession planning is a crucial aspect of enterprise management, as it helps ensure the smooth continuation of operations even when key personnel leave the organisation.
Here are seven steps to successful enterprise-wide succession planning in Australia:
1. Define your goals and objectives.
“Succession planning is a continuous process, not just a one-time event,” say business consultants Omar Romman and Nick Di Loreto at Harvard Business Review. It demands a substantial commitment from company leadership and begins with its vision for the future.
The first step to successful succession planning is to determine the goals and objectives of the process. This involves assessing the organisation’s current state and considering what is needed to sustain operations into the future.
2. Identify key personnel and positions for succession planning
The next step is identifying vital organisational positions critical to its success. These positions include high-level executives, department heads, managers, and critical technical roles essential to the business’s smooth running. These are the roles that, if left unfilled, could harm the stability and advancement of the company.
The answers to these questions will help determine which roles are vital:
- The influence of the role on business processes.
- The level of difficulty in finding external candidates for the role.
- The level of internal talent available to fill the role.
- The specialised skills or expertise required to perform the role effectively.
3. Assess the talent pool
Once crucial positions have been identified, the next step is to assess the talent pool within the organisation. This includes evaluating existing employees’ skills, experience, and potential to determine who might be best suited to take on new responsibilities.
4. Develop a talent management strategy
Based on the talent pool assessment results, it’s essential to develop a talent management strategy that addresses the skills and experience gaps in the organisation. This might involve implementing training and development programs, offering mentorship opportunities, and providing career progression paths for employees.
5. Create a succession plan
With a clear understanding of the talent pool and a solid talent management strategy, it’s time to create a formal succession plan. This should outline the steps that will be taken to transfer key responsibilities to new personnel, as well as the roles and responsibilities of different stakeholders in the process.
6. Communicate the plan
Once the succession plan is in place, it’s essential to communicate it to all relevant stakeholders, including employees, managers, and executives. This helps ensure everyone understands the process and their roles and responsibilities. During the one-on-one meeting, educate each protégé that they have been selected for crucial roles with expanding responsibilities. Clarify that there are no assurances and that the circumstances for the company and the succession prospects can evolve.
7. Test the Plan in Practice
Even the most comprehensive plans can have imperfections. To mitigate the risk of unexpected events, running a trial of the succession plan is essential. For instance, when someone in one of the designated positions takes a leave of absence, their potential successor can temporarily assume some of their responsibilities.
This provides the successful candidate with valuable hands-on experience and understanding of their future role and allows HR and department managers to evaluate their performance. This information can then be used to identify areas for professional growth.
8. Review and update the plan
Finally, it’s essential to regularly review and update the succession plan as needed to ensure that it remains relevant and practical. This might involve changing the talent management strategy, reassessing the talent pool, and updating the succession plan to reflect organisational changes.
Consider Hiring a Succession Planning Services Provider
For some organisations, the process of succession planning can be complex and time-consuming, and they may benefit from the expertise of a specialist succession planning services provider. These providers can assist with the identification of critical positions, the assessment of the talent pool, the development of a talent management strategy, and the creation and implementation of a formal succession plan.
Organisations can ensure that their succession planning process is thorough, effective, and well-informed by working with a succession planning services provider. The provider can also provide guidance and support throughout the process, helping to ensure that the plan is implemented successfully and that the organisation is prepared for the future.
In conclusion, succession planning is crucial to any organisation’s long-term success. By following the steps outlined in this article, businesses can develop a comprehensive and effective plan that addresses the transfer of fundamental knowledge and skills, preserving corporate culture and values, and smoothly continuing operations. Investing time and effort into succession planning is crucial, as businesses that lack such plans put their future stability at risk. Creating a forward-thinking plan that adapts to changes can seem daunting, but taking it step by step can help ensure long-term stability and sustenance for your organisation.